Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

How do I underwrite a rental deal in Saskatoon?

Underwriting a rental deal means confirming it cash flows after real expenses, not just comparing purchase price to advertised rent. Start with comparable sold prices from the Saskatchewan REALTORS Association, then subtract property taxes, insurance, utilities not covered by tenants and a realistic vacancy allowance from gross rent to find the actual net income.

Legal suite status decides a large part of the number. The City of Saskatoon requires a permit for a secondary suite, and a lender will only credit rental income a City file supports, so an unpermitted unit can look profitable on paper while contributing almost nothing to what a bank will actually finance.

CMHC's lending guidelines, roughly 39 percent of gross income on housing costs and 44 percent on total debt, still apply to an investor's own financing even on a rental purchase, so the deal has to work for your personal qualifying ratios, not just the property's numbers in isolation.

Run the numbers on net income and legal status before the purchase price, not after. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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